Steps to Pricing Your Imported Items

Distributors and manufacturers deal with landed cost every day. The Business Dictionary defines landed cost as “the total cost of a landed shipment including purchase price, freight, insurance, and other costs up to the port of destination.” Landed cost may also include other taxes involved in the shipment such as customs duties and VAT. Landed cost is an important factor in coming up with a pricing strategy for products manufactured. It is crucial for companies who import goods for distribution or raw materials for product manufacturing to understand how much landed cost is or how it should be calculated in order to gauge profitability and pricing margins. Here are the steps to pricing your imported items with careful consideration of the landed cost:

• Ensure you have all your costs accounted for. This pertains to all costs associated with getting your products from the supplier up until they reach your warehouse. You will be surprised with all the costs involved in your shipment. These are just few of the costs you will encounter:
  • Freight charges
  • Handling fees
  • VAT
  • Payment fees
  • Custom duties
  • Document fees
• Determine the landed cost. As defined above, your landed cost is the value of your goods, which is the supplier price multiplied by the rate of exchange (ROE), plus all the shipping fees, duties, ancillary costs, handling costs and associated costs.
• Make use of this formula to determine you selling price: (Cost of goods x ROE) + freight and shipping costs + duties and fees + markup + VAT = selling price

However, if you are a company that deals with numerous shipments abroad twice or thrice every few weeks, tracking of the costs manually would take ages for you to finish. You would need an ERP software to make things easier for you. ERP Consulting LLC is a company that provides an ERP software, Microsoft Dynamics GP in Pataskala Ohio. Microsoft Dynamics GP is an enterprise resource planning (ERP) software systems for SMEs or small and medium-sized enterprises. It is a solution provided by ERP Consulting LLC to help businesses manage their financial transactions, inventory and operations. If you want to make use of the Microsoft Dynamics GP in Pataskala Ohio today, call ERP Consulting LLC at 740-951-0220 or email your queries at mtaranto@erpconsultingLLC.com.

Keeping Up with Microsoft Dynamics GP

Starting a business is not a piece of cake. The same goes for ensuring the business gains traction upward as soon as it is put in place. There are so many things to worry about aside from target sales are reached – there’s all the finance aspects you need to keep track of (employees’ wages, budget, operational expenses, etc.), inventory of products and services, customer support, payroll, and so many more. In order for new businesses to grow, they need a tool that will aid them in various aspects of operations. ERP Consulting LLC recommends the use of the Microsoft Dynamics GP in Pataskala Ohio. Microsoft Dynamics GP is a software solutions that helps small and medium-sized enterprises with their financials, inventory and operations. In summary, the software empowers businesses to:

• Manage finances and accounting

  With account-level security, it is now safer and more convenient to manage and keep track of all details of monetary transactions.

• Manage inventory

  To know what’s going in and out of both virtual and actual shelves, the tool gives you the power to track deliveries, orders, refunds, lacking stocks and vendor details of various products.

• Manage sales and service

  The tool helps you manage all sales transactions and all contracts made with clients, vendors and other resources.

• Track updates and growth

  It aids you in coming up with the data for the company’s performance in terms of sales as well as various teams’ performances on the field. It is specially designed to include analytics that will provide a visual representation of the company’s performance as a whole.

• Manage employee profiles and payroll

  You get to input all your employees’ profiles as well as encode details for their payroll. It’s a one-stop shop for HR personnel to help them manage details of all company employees.

If you want to enjoy the benefits of having to use the Microsoft Dynamics GP in Pataskala Ohio, give is a call at 740-951-0220 or email us at mtaranto@erpconsultingLLC.com.